How do I check an electrical contractor’s commercial versus residential job mix?

Ask for a job list that tags each project as commercial or residential, then add renovation, service calls and new construction if the company uses those labels. Review several years so one large project does not distort the picture. Calculate each category’s share of revenue and of profit, because they can look very different.

Commercial work often means larger jobs, longer payment cycles and reliance on a few general contractors or property owners. Residential work usually means many small customers, faster payment and more dependence on reputation. Ask how the company finds each type, who prices it and what happens to relationships if the owner steps aside.

Think about fit. Does the crew have the skills and tools for the work you want to keep? Are the sales and estimating people tied to one side? A buyer may also need to review leases, bonding and insurance that go with commercial work. Industry associations in the building trades can describe how contractors are usually organized, and your accountant can help interpret the margins. Look at the backlog too. A full calendar of one kind of work can show where the business is heading, and whether the team is stretched.

Key takeaways

• Tag past jobs by type and compare both revenue and profit.
• Check payment speed and repeat customers on each side.
• Ask who finds and prices each type of work, and whether they will stay.
• Review the current backlog by job type as well as the history.